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Google Slashes DoubleClick Headcount

Written on: April 3rd 2008
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ADOTAS – Google Inc. is laying off 300 DoubleClickers today – about 25% of its staff — and moving to sell a unit that employs an additional 200 people, according to widespread reports.

Google will split off its search marketing arm from its affiliate marketing business and sell the search marketing business at DoubleClick’s interactive advertising technology unit, Reuters reports.

The search marketing business – Performics Search Marketing — employs 200 of DoubleClick’s 1,500-strong staff. Performics was created to help marketers place interactive ads on search engines.

“It’s clear to us that we do not want to be in the search engine marketing business,” Tom Phillips, director of DoubleClick’s integration efforts with Google, wrote on the company’s official blog. “Maintaining objectivity in both search and advertising is paramount to Google’s mission and core to the trust we ask from our users.”

DoubleClick will run Performics as a separate unit until it is sold.

Separately, DoubleClick appears to be laying off an additional 300 DoubleClick staffers today. A Google spokesperson told U.K. publication PCPro, “As with many mergers, this review has resulted in a reduction in headcount at the acquired company. Today, we are laying off some DoubleClick employees in the U.S. and placing others in transitional roles.”

This set of layoffs marks the first time in Google’s history that it has terminated a significant number of staffers.

“Since our acquisition of DoubleClick closed on March 11, we have been working to match and align DoubleClick employees in the U.S. with our organizational plan for the business,” Google said in a statement. “As with many mergers, this review has resulted in a reduction in headcount at the acquired company.”